Beauty Bay, the Manchester-based online cosmetics business, has experienced another decline in sales for the year ending March 2023. This follows a previous drop in sales the year before. According to the company’s annual accounts, turnover decreased from £93.1 million to £75.5 million.

However, Beauty Bay has implemented a new strategy that has positively impacted its profit margins. Instead of solely focusing on increasing sales, the company has shifted its attention to driving profitability on an order level. This new approach has allowed the company to improve its product margins, resulting in an overall increase of 3 percentage points to 17% in gross margins.

Despite the decrease in sales, Beauty Bay was able to deliver a similar level of gross profit compared to the previous year. Although it reported a pre-tax loss of £5.6 million, this is an improvement from the £9.3 million loss in the prior year. Other profit measures, such as EBITDA, have also shown signs of improvement.

To fuel further growth, Beauty Bay has increased its focus on its private label brand, By Beauty Bay, and has launched new product offerings. The company recognizes the importance of adapting to changing market conditions and maintaining a competitive edge, which is why it continues to invest in its digital platforms.

The pandemic has presented challenges for the online cosmetics business, with many shoppers returning to physical stores. However, Beauty Bay’s new strategy and emphasis on profitability have helped mitigate some of the impact on its bottom line. Although there is still work to be done, the company remains optimistic about its future in an increasingly competitive marketplace.

Useful links:
1. Beauty Bay website
2. Beauty Bay blog